What’s Going on with Extra Space Storage?
Yesterday, August 9, Extra Space Storage (EXR) informed investors through the United States Securities and Exchange Commission (Form 8-K) that the company has entered into an 800 million equity distribution agreement. During extended-hours trading this morning, EXR stock dropped 0.52%, down to $174.43 a share.
What Does This Mean for EXR?
Extra Space Storage (operating 1,800 self-storage properties in 38 states) has entered into an equity distribution agreement “with each of BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc., Citigroup Global Markets Inc., Jefferies LLC, J.P. Morgan Securities LLC, Regions Securities LLC, TD Securities (USA) LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC, each as sales agents and/or principals.”
Under the terms of the Equity Distribution Agreement, Extra Space Storage can issue and sell from time to time shares of EXR common stock, par value $0.01 per share, with an aggregate offering price of up to $800 million.
Extra Space Storage plans to contribute the net proceeds from these securities sales to the Operating Partnership [Extra Space Storage LP] to fund possible acquisition opportunities, to reimburse amounts “outstanding from time to time” under Extra Space Storage Inc.’s lines of credit, as well as for other general corporate and working capital purposes.
EXR has a Long-Term Technical Rank of 90. Find out what this means to you and get the rest of the rankings on EXR!
Extra Space Storage owns, operates, and manages more than 1,800 self-storage properties in 38 states, with over 100 million net rentable square feet of storage space. Of these properties, the majority are wholly owned, while some facilities are owned through joint ventures and others are owned by third parties and managed by Extra Space Storage in exchange for a management fee.
